Customer Churn Rate Calculator
This customer churn rate calculator covers customer churn, annualised churn and retention, plus MRR revenue churn with net-churn, benchmarked against 2026 SaaS ranges.
The churn rate formula
This churn rate calculator works out how fast you are losing customers or revenue. For customers, churn rate = (churned / customers at start) × 100, where churned equals customers at start plus new customers minus customers at end. Switch to the revenue tab for MRR churn, which divides the recurring revenue you lost by the recurring revenue you started with. The calculator shows the monthly rate, the annualised rate, and your retention rate, because those three tell very different stories.
Monthly versus annual: small numbers compound fast
The most misread number in SaaS is monthly churn. A 5 percent monthly churn is not 60 percent over a year, it is about 46 percent, because each month you lose 5 percent of a base that is already shrinking. That is why a rate that looks tiny on a monthly report quietly costs you nearly half your customers a year. The calculator annualises for you with proper compounding, so you see the real yearly impact rather than a misleading twelve-times estimate.
What is a good churn rate?
Churn benchmarks depend heavily on who you sell to. Rough 2026 monthly customer churn:
| Segment | Healthy monthly churn |
|---|---|
| Enterprise SaaS | 0.3% - 0.8% (4% - 9% a year) |
| Mid-market | 1.5% - 3% |
| SMB / prosumer | 2% - 5% (22% - 46% a year) |
| Median B2B SaaS | ~3.5% monthly |
Source: Recurly 2025 Churn Report and Optifai 2026 B2B SaaS benchmarks (939 companies). Last reviewed July 2026.
The rule of thumb: buyers and investors start to penalise a business once monthly churn passes 5 percent, and enterprise-grade retention sits under 1 percent. Judge yourself against your own segment, not the median.
Gross churn, net churn and the magic of negative churn
Logo churn and revenue churn are not the same. Revenue churn is usually lower than customer churn, because the customers who stay often spend more over time. The best SaaS companies push this further and reach negative net revenue churn, where expansion revenue from upsells and upgrades outweighs everything lost to cancellations. Best-in-class net revenue churn runs at minus 5 to minus 15 percent, which means revenue from the existing base grows even if no new customer is ever added. Enter your MRR expansion on the revenue tab to see your net churn, and whether your base is quietly growing or shrinking.
How to use this calculator
- On the customer tab, enter customers at the start, new customers gained, and customers at the end.
- Read your monthly churn, its annualised rate, and your retention rate.
- Switch to the revenue tab and add MRR expansion to see gross and net revenue churn.
Inputs are saved on this device, and Share copies a link with your numbers built in.
Voluntary versus involuntary churn
Not all churn is a rejection. Of the roughly 3.5 percent median monthly churn in B2B SaaS, about 2.6 points is voluntary, customers who chose to cancel, and about 0.8 points is involuntary, driven by failed payments, expired cards and declined renewals. That involuntary slice is the cheapest churn to win back, because the customer never meant to leave. A solid dunning process, retrying failed charges and prompting card updates, recovers a real share of it, which is why revenue churn often improves faster than product churn once you fix billing. Split your own number this way before you assume the problem is your product.
Frequently asked questions
What is a good churn rate?
Monthly customer churn under 1 percent is enterprise-grade, 1 to 2 percent is healthy mid-market, and 2 to 4 percent is typical for SMB. The median is about 3.5 percent, and above 5 percent raises flags.
How do you calculate churn rate?
Divide churned customers by customers at the start, times 100. Churned equals customers at start plus new minus customers at end.
Why is my annual churn so much higher than monthly?
Because it compounds. 5 percent monthly works out to roughly 46 percent a year, not 60, as you lose a slice of a shrinking base each month.
What is negative churn?
When expansion revenue from existing customers outweighs revenue lost to cancellations, so your recurring revenue grows without any new customers. Best-in-class SaaS runs minus 5 to minus 15 percent net revenue churn.
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